Multichannel presence, boon or curse?: A comparison in price, loyalty, regret, and disappointment

Abstract

Despite the many advantages of multichannel retail, this paper raises certain issues that may pose various pitfalls to the retailer. We focus on how varying the price and loyalty conditions may instigate complex emotional responses that can adversely affect the retailer. We adopt a multi-method approach across three studies, combining facial expression analysis (Study 1), scenario-based experiments, and a self-reported survey (Studies 2 & 3). Our findings show how inconsistent pricing in online and offline stores influences consumers’ regret and disappointment, which in turn impact their post-purchase behaviours of returning or retaining the product. The research contributes both theoretically and managerially by delving into the emotional responses of consumers to promotional discrepancies in multichannel retail.